Is Amway a Ponzi Scheme? My Honest Review Answers That Exact Question!

Born & raised in England, Dale is the founder of Living More Working Less & he has been making a living from his laptop ever since leaving his job as an electrician back in 2012. Now he shares what he's learned to help others do the same... [read more]

Amway is yet another product selling platform based upon a MLM recruitment structure. Today, I am interested in reviewing this promising website because many of my followers have requested my thoughts.

Amway Website ScreenshotFirst of all, we need to ask the important question – is Amway a Ponzi scheme or does it truly feature a legitimate MLM model?

I’ve gone through a number of websites like Amway and the main difference I’ve seen is the use of new terms in an attempt to attract more and more potential members.

Does Amway offer a legitimate money-making platform? Is Amway focused on product sales? How much can you earn through this platform? I’ll answer all of these questions in this here honest Amway review.

What Is Amway?   |   How Does Amway Work?   |   Is Amway a Ponzi?   |   Is Amway a Scam?   |   A Better Alternative

What Is Amway?

Amway has been doing business for almost 60 years and has successfully managed to reach more than 100 countries across the globe. As far as direct sales are concerned, Amway stands out. Since its establishment in 1959, Amway has been dealing in beauty and health-related products. The interesting thing is that the company doesn’t operate through stores but it basically sells products solely through direct sellers.

Amway Products

The Amway Business Model

Amway operates a MLM based model in which it encourages the Independent Business Owners (IBOs) to recruit more IBOs in an attempt to earn commissions. You can earn commissions from your own efforts as well as from the IBOs under your umbrella.

What about product sales? This is the real question because if the company doesn’t encourage sales through IBOs then it could bear the stigma of being a Ponzi scheme. There are a number of reviewers who criticize Amway claiming that business model relies heavily on recruitments. To me, criticizing a company which has been selling its products since 1959 is unfair. We need concrete evidence and solid arguments before calling Amway a Ponzi scheme.

However, it’s fair to say that there is only a very fine line between a legitimate MLM company & a Ponzi scheme – especially when you consider the visualisation of the MLM structure shown below:

Multi Level Marketing Pyramid Scheme

How Does Amway Work?

First of all, we need to have a look at the compensation plan in an attempt to determine whether Amway is a Ponzi scheme or not. I must admit that the compensation is a bit complex and at first, it really confused me. Once you join Amway as an Independent Business Owner, you come to know that you there are three major plans which allow you to generate income.

Sign Up

If somebody wants to buy Amway products, you can encourage them to sign up with the platform. You’ll earn commission by doing this which is simple and fair. But please don’t forget that you’ll earn a commission when you bring in genuine customers. Once they sign up, you’ll earn commissions from each of their purchases.


An IBO can purchase Amway products at wholesale/discounted price and then resell them at retail prices. This is the legitimate way of earning money through sales so it is encouraging to see this compensation plan with Amway. It really contributes to its legitimacy and this is what most of the reviewers look for when reviewing an MLM model.


This is what makes people doubt the legitimacy of any MLM model. Amway’s compensation plan also includes commissions against recruitments. The plan involves the pyramid structure (which I showed earlier) through which you earn commissions, climb higher rankings and achieve higher levels to increase your chance for making big money.

The Focal Point

You might have heard the terms Group Volume (GV) and Point Value (PV). These terms have been associated with the MLM models and they reflect the sales volume of an IBO and IBOs under his/her umbrella. This is the real focal point. As GV and PV rise, the percentage commission you can earn also climbs up. This is what forces you to admit that the model is actually encouraging product sales to real customers. Remember that a legitimate MLM model is the one which generates more income through product sales rather than recruitments.

Is Amway a Ponzi Scheme?

A big NO! Amway is NOT a Ponzi scheme for a basic reason that the company’s model features GV and PV which means that the company is actually focusing on sales and offering real value and genuine products. This is a recommended platform for skilled sellers who want to lift their income level or properly utilize their free time in a profitable activity.

Do be warned though that there is, of course, no guarantee that you will make money with Amway, or other MLM’s like it for that matter. The truth is that most people who join these types of companies fail to make any money at all… And often many of them actually just end up spending more than they ever manage to make back.

The image below is a snippet of an FTC publication which highlights the shockingly low success rate within MLM companies:

MLM Failure Rate

So like I say if you’re already an experienced network marketer then it could be seen a good opportunity, but if you’re just a newbie looking for ways to make money then it’s probably not the best place for you to start.

There are actually several other risk-free ways that you can start making money online. One of which is something called affiliate marketing & that’s the same way I personally make most of my own money online so it’s safe to say I highly recommend that… And regardless as to whether you’re new or experienced at network marketing, I’d suggest you check it out because in my opinion, it’s much, much better.

A good place you can learn more about it is a place called Commission Academy. There you’ll get all of the tools & training you need to get started with affiliate marketing & it’s a platform that’s been proven to help many people find success.

Is Amway a Scam?

Amway is NOT a scam and even after spending over a week researching into it, I could not manage to find the slightest of hints in this regard. The company has spent more than half a century in the market and its products have really won the hearts of the consumers.

The best part is that the company has grown so much that it is now operational in more than 100 countries. For such a promising brand, it is definitely impossible to indulge in any unlawful or malicious activity.

However despite my positive criticism towards it I still won’t be recommending it & I appreciate that might come as a bit of a shock to you. The simple reason I won’t be recommending it is that I am personally not a very big of MLM companies due to their drastically low success rates.

As I mentioned earlier in this review few people who join MLM companies like Amway manage to find success & most just end up spending more than ever actually manage to make back which is not good at all.

Yes, you can make money with them but it’s much more difficult than it seems on the forefront. For that reason, I would recommend you look into something different such as affiliate marketing which carries much less risk (and is much easier to find success with). You can learn more about that over at Commission Academy if it interests you.

So overall despite being legit, the Amway business opportunity will be getting a thumbs down from me but hopefully, you can appreciate why after reading my review. If you do happen to still have any questions though then feel free to leave them below & I’ll answer them as quickly as I can.

A Better Alternative

The sad truth is that unfortunately most of the programs promising to help you make money online are scams. I can say that confidently after exposing over 500+ of them here on this blog.

But the good news is that even though most of them are indeed scams, there are actually some very good programs in amongst them - some programs that can truly help you to earn money.

And out of all of the legit programs I've seen, the one I would recommend the most to anybody looking to get started online is Commission Academy. In my own opinion, that's the best place to start.

At Commission Academy, you'll be provided with everything you need (including the training & tools) to begin earning real money by promoting products or services for companies like Amazon online.

The best part is that there's literally no limit on the amount you can earn with it & the process is pretty simple which means that it's absolutely perfect for people that don't have much experience.

Some wealthy affiliates even earn as much as 5-figures per month... Or more!

Amazon Earnings Example

I mean don't get me wrong, that kind of money won't just fall into your lap without doing any work... But the harder you're willing to work at it, the more you stand to earn with it.

So if you're looking to get started but don't know which route you should go down or which program you should join (and don't want to waste money on bogus things that don't actually work), then I'd highly recommend checking out Commission Academy first. You can learn more about it here.

About the Author:
Born & raised in England, Dale is the founder of Living More Working Less & he has been making a living from his laptop ever since leaving his job as an electrician back in 2012. Now he shares what he's learned to help others do the same... [read more]
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